Chinese-based Firm Signs Grand Mubarak Port Early Contractor Involvement

The Grand Mubarak Port has taken a giant step with a new agreement between China and Kuwait. Beijing’s China Harbour Engineering Company, the subsidiary of China Communications Construction Company (CCCC), signed an early contractor involvement (ECI) deal with Kuwait. The move is to speed up the subsequent phases of construction of Grand Mubarak Port. The agreement entails various technical aspects, including surveying, hydrological monitoring, and geophysical investigation.

It also includes the process simulation, initial design, and site management. Its start was in April, with representatives from both countries’ high levels in attendance. In particular, Vice-Minister Fu Xuyin and Ambassador Zhang Jianwei were in attendance on behalf of China. Kuwait’s Minister of Public Works, Nora Mohammad Al-Mashaan, was also present. The agreement is a product of years of cooperation. In January last year, CCCC’s bid to oversee each stage of the port was endorsed by Kuwait’s cabinet. Moreover, a 2023 memorandum of understanding further consolidated bilateral commitment to the Grand Mubarak Port project.

Project Factsheet

Significance:

Major component of Kuwait’s long-term development under the Fourth Kuwait Master Plan 2040.
Enhances economic cooperation between China and Kuwait through strategic coordination of infrastructure.
Represents opening up the port for operation, enhancing trade and logistics capacity.
Decreases China’s stake in Kuwait’s national development plans for 2024–2028.

Infrastructure:

Development of quay walls, container terminals, and port-related buildings in phase two.
Infrastructure schemes involve reclamation, loading and unloading platforms, and container yards.
Installation of security and safety systems as part of operation readiness planned.
First phase, completed in 2014 for $1.2 billion, lacked operational equipment like cranes.

Developer:

Led by China Harbour Engineering Company, subsidiary of China Communications Construction Company (CCCC).
Contract includes early contractor involvement (ECI) for technical and design works.
Project supported by Kuwaiti authorities like Ministry of Public Works.
Cooperation strengthened by high-level bilateral contacts and agreements since 2023.

Financing:

Financial data on future phases were not officially announced.
Phase one was funded for $1.2 billion expense.
Future funding may come in the forms of approvals like the cabinet approval in January 2025.
Expected to involve entangled cooperation of the public sector in both nations.

Scope of Implementation on Kuwait’s Grand Mubarak Port

The scope of phase two of Grand Mubarak Port is extensive. It consists of new loading and unloading facilities, quay wall construction, and land reclamation. Furthermore, a container yard, terminal buildings, and associated infrastructure will be built. Basic security and safety systems will also be fitted. These are required to start port operations because phase one did not cover key equipment.

Completed in 2014 at a cost of $1.2 billion, phase one only included marina works, berths, and administrative buildings. Now, the completion of phase two will witness the port coming to life. A third phase is also in the pipeline, which will further boost capacity. All this is part of Kuwait’s broader national plans. It was in September 2023 that the country signed multiple strategic development agreements through 2028. As a result, Chinese businesses are strongly positioned to play a leading role in the Kuwait Master Plan 2040. Grand Mubarak Port now features prominently in this long-term plan.